Explain the meaning of cost behavior analysis.

Question

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Answer 1

Question

Chapter 18, Problem 1Q

(a)

To determine

Explain the meaning of cost behavior analysis.

(a)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Cost tends to change with change in the business condition, therefore this change in cost with respect to the business conditions is analyzed and this is known as cost behavior analysis.

Different types of costs are incurred in the business some of them change as per the production, whereas some of the costs do not change with the change in level of production. This irregular behavior of production is referred as cost behavior.

Conclusion

Thus, cost behavior analysis is change in cost due to change in business conditions.

(b)

To determine

Explain the importance of cost behavior analysis for management.

(b)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Any kind of managerial decision or the final price of the product depends on the cost incurred in production. Therefore, cost analysis is very important factor.

The importance of cost behavior analysis is as given below:

A proper idea of cost should be known because the cost factor decides which course of action the firm should follow.
Different types of costs are incurred in the business some of them changes as per the production, whereas some of the cost do not change with the change in level of production. Therefore, the price of the product totally depends on cost.

Conclusion

Thus, cost behavior analysis is important for the management of the company.

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Answer 2

Question

Chapter 18, Problem 1Q

(a)

To determine

Explain the meaning of cost behavior analysis.

(a)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Cost tends to change with change in the business condition, therefore this change in cost with respect to the business conditions is analyzed and this is known as cost behavior analysis.

Different types of costs are incurred in the business some of them change as per the production, whereas some of the costs do not change with the change in level of production. This irregular behavior of production is referred as cost behavior.

Conclusion

Thus, cost behavior analysis is change in cost due to change in business conditions.

(b)

To determine

Explain the importance of cost behavior analysis for management.

(b)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Any kind of managerial decision or the final price of the product depends on the cost incurred in production. Therefore, cost analysis is very important factor.

The importance of cost behavior analysis is as given below:

A proper idea of cost should be known because the cost factor decides which course of action the firm should follow.
Different types of costs are incurred in the business some of them changes as per the production, whereas some of the cost do not change with the change in level of production. Therefore, the price of the product totally depends on cost.

Conclusion

Thus, cost behavior analysis is important for the management of the company.

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Answer 3

Question

Chapter 18, Problem 1Q

(a)

To determine

Explain the meaning of cost behavior analysis.

(a)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Cost tends to change with change in the business condition, therefore this change in cost with respect to the business conditions is analyzed and this is known as cost behavior analysis.

Different types of costs are incurred in the business some of them change as per the production, whereas some of the costs do not change with the change in level of production. This irregular behavior of production is referred as cost behavior.

Conclusion

Thus, cost behavior analysis is change in cost due to change in business conditions.

(b)

To determine

Explain the importance of cost behavior analysis for management.

(b)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Any kind of managerial decision or the final price of the product depends on the cost incurred in production. Therefore, cost analysis is very important factor.

The importance of cost behavior analysis is as given below:

A proper idea of cost should be known because the cost factor decides which course of action the firm should follow.
Different types of costs are incurred in the business some of them changes as per the production, whereas some of the cost do not change with the change in level of production. Therefore, the price of the product totally depends on cost.

Conclusion

Thus, cost behavior analysis is important for the management of the company.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 1Q

(a)

To determine

Explain the meaning of cost behavior analysis.

(a)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Cost tends to change with change in the business condition, therefore this change in cost with respect to the business conditions is analyzed and this is known as cost behavior analysis.

Different types of costs are incurred in the business some of them change as per the production, whereas some of the costs do not change with the change in level of production. This irregular behavior of production is referred as cost behavior.

Conclusion

Thus, cost behavior analysis is change in cost due to change in business conditions.

(b)

To determine

Explain the importance of cost behavior analysis for management.

(b)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Any kind of managerial decision or the final price of the product depends on the cost incurred in production. Therefore, cost analysis is very important factor.

The importance of cost behavior analysis is as given below:

A proper idea of cost should be known because the cost factor decides which course of action the firm should follow.
Different types of costs are incurred in the business some of them changes as per the production, whereas some of the cost do not change with the change in level of production. Therefore, the price of the product totally depends on cost.

Conclusion

Thus, cost behavior analysis is important for the management of the company.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 1Q

(a)

To determine

Explain the meaning of cost behavior analysis.

(a)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Cost tends to change with change in the business condition, therefore this change in cost with respect to the business conditions is analyzed and this is known as cost behavior analysis.

Different types of costs are incurred in the business some of them change as per the production, whereas some of the costs do not change with the change in level of production. This irregular behavior of production is referred as cost behavior.

Conclusion

Thus, cost behavior analysis is change in cost due to change in business conditions.

(b)

To determine

Explain the importance of cost behavior analysis for management.

(b)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Any kind of managerial decision or the final price of the product depends on the cost incurred in production. Therefore, cost analysis is very important factor.

The importance of cost behavior analysis is as given below:

A proper idea of cost should be known because the cost factor decides which course of action the firm should follow.
Different types of costs are incurred in the business some of them changes as per the production, whereas some of the cost do not change with the change in level of production. Therefore, the price of the product totally depends on cost.

Conclusion

Thus, cost behavior analysis is important for the management of the company.

Answer 6

Chapter 18, Problem 1Q

(a)

To determine

Explain the meaning of cost behavior analysis.

(a)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Cost tends to change with change in the business condition, therefore this change in cost with respect to the business conditions is analyzed and this is known as cost behavior analysis.

Different types of costs are incurred in the business some of them change as per the production, whereas some of the costs do not change with the change in level of production. This irregular behavior of production is referred as cost behavior.

Conclusion

Thus, cost behavior analysis is change in cost due to change in business conditions.

Answer 7

Chapter 18, Problem 1Q

(a)

To determine

Explain the meaning of cost behavior analysis.

Answer 8

(a)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Cost tends to change with change in the business condition, therefore this change in cost with respect to the business conditions is analyzed and this is known as cost behavior analysis.

Different types of costs are incurred in the business some of them change as per the production, whereas some of the costs do not change with the change in level of production. This irregular behavior of production is referred as cost behavior.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Conclusion

Thus, cost behavior analysis is change in cost due to change in business conditions.

Answer 13

(b)

To determine

Explain the importance of cost behavior analysis for management.

(b)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Any kind of managerial decision or the final price of the product depends on the cost incurred in production. Therefore, cost analysis is very important factor.

The importance of cost behavior analysis is as given below:

A proper idea of cost should be known because the cost factor decides which course of action the firm should follow.
Different types of costs are incurred in the business some of them changes as per the production, whereas some of the cost do not change with the change in level of production. Therefore, the price of the product totally depends on cost.

Conclusion

Thus, cost behavior analysis is important for the management of the company.

Answer 14

(b)

To determine

Explain the importance of cost behavior analysis for management.

Answer 15

(b)

Expert Solution

Explanation of Solution

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

Any kind of managerial decision or the final price of the product depends on the cost incurred in production. Therefore, cost analysis is very important factor.

The importance of cost behavior analysis is as given below:

A proper idea of cost should be known because the cost factor decides which course of action the firm should follow.
Different types of costs are incurred in the business some of them changes as per the production, whereas some of the cost do not change with the change in level of production. Therefore, the price of the product totally depends on cost.